TransCanada and two other firms have announced plans to build a 165-mile, 100,000-barrel-per-day refined products pipeline in Mexico for $800 million. The project will include a marine terminal near Tuxpan, Veracruz, and an inland storage and distribution hub in central Mexico. It would be the largest single investment in refined products since Mexico opened its energy sector to private funding in 2014.
TransCanada said the pipeline would parallel its recently awarded Tuxpan-Tula natural gas pipeline project. The inland distribution hub will provide access to the Mexico Valley market, the company said.
TransCanada will own a 50% interest in the pipeline, with 40% owned by Sierra Oil & Gas and the remaining 10% owned by Grupo TMM.
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